On Wednesday, the prices of Gold mounted to a one-month high thereby weakening the dollar. Amid US election the sudden demand of the yellow metal surges with an increase in metal prices on broader side.
Furthermore, this week dollar weakens and made a low thereby aiding the metal market. If we converse about the bullion market then for no reason the prices of gold rose. Consequently, we anticipate that this uncertain behavior of Gold rally occurs due to an outcome of the mid-term elections in US.
Next FOMC meet is in December and market is expecting a rise of 0.50 BPS in interest rate this time. In the last meet FED made a hike of 0.75 BPS to reduce the spiking inflation down. Thus, this time we are expecting a smaller hike than before.
Tomorrow i.e. Thursday we are expecting an inflation down by some % because in October the inflation was up which put FED members in a tough state to increase interest rates.
However, CPI Inflation data comes with maximum importance which may drive the international market.
The bullion international market settled on a positive note on Tuesday. Furthermore, Wednesday also did not made much difference for the prices of Gold.
From yesterday only, the prices of Gold traded in a green candle. Also, we are expecting a sharp upside rally between $1750—$1780 by the end of this week.
However, we may expect stability in the prices of Gold today.
Technical Analysis on Gold
Heading towards the technical side, Gold Future prices are taking an upside move in this week. On the contrary, forming a double top chart pattern too.
Gold Futures witnesses two resistance levels i.e. $1725 and $1755. Furthermore, we may expect a good support around these levels.
Furthermore, if breaches the resistance levels then we may expect more upside rally in the days ahead.